The tax savings have come as a boon for the real estate sector. Shravan Gupta, MGF Group feels this will enhance the affordability of the sector. And bring more NRI and investors into the segment. This trend is starting to show its real potential amongst the new and existing home buyers. The tax saved has wide implications on real estate. The biggest benefactor of this change will be the middle class. With more money in hand saving for the house becomes easy. Factors that have made the real estate favourable again are:
Enhanced disposable income: The middle class can now invest in homes due to enhanced saving in the hand. And it will strengthen the affordable housing segment in the long run. The reality of a new home is now the reality for every Indian family easing the transition from rented homes. The home sales in metropolitans, tier 2- 3 cities are back in demand. This is a sign of the revival for the real estate segment.
The remote culture trend: The new norms have changed from WFH to remote culture. This has boosted the sales in tier 2 and 3 cities with people moving back and investing in the bigger homes. The enhanced savings allow you to invest in a second home in Tier 2 and 3 cities. It has come as a boon for the housing sector. The sale of commercial real estate in these cities is due to enhanced connectivity and infrastructural developments.
The tax relief will act as a boon for the real estate sector. In 2025, the sales figure will increase drawing new investors. And transform the Indian real estate forever. Hence, it is the right time to invest in homes here and use the money for future gain.
